Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared. Revenue $5000 Dividends declared??? $Unkown Expenses $4000 RE 1/1 $8000 RE 12/31 $6000 I was givent this equation on how to solve and find the unknown Dividends declared. DD=RE 1/1+Revenue-Expenses-RE 12/31 DD=$8000+$5000-$4000-$3000 DD=$6000 He or She then added this 1) RE 1/1 balance is $6000 2) RE 12/31 is $9000 3) Dividend Declared $6000 **So how did he get the new amounts for REs?***
Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared. Revenue $5000 Dividends declared??? $Unkown Expenses $4000 RE 1/1 $8000 RE 12/31 $6000 I was givent this equation on how to solve and find the unknown Dividends declared. DD=RE 1/1+Revenue-Expenses-RE 12/31 DD=$8000+$5000-$4000-$3000 DD=$6000 He or She then added this 1) RE 1/1 balance is $6000 2) RE 12/31 is $9000 3) Dividend Declared $6000 **So how did he get the new amounts for REs?***
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need clarification on an answer I was given. The problem was to find out the cost of Dividends declared.
Revenue $5000
Dividends declared??? $Unkown
Expenses $4000
RE 1/1 $8000
RE 12/31 $6000
I was givent this equation on how to solve and find the unknown Dividends declared.
DD=RE 1/1+Revenue-Expenses-RE 12/31
DD=$8000+$5000-$4000-$3000
DD=$6000
He or She then added this
1) RE 1/1 balance is $6000
2) RE 12/31 is $9000
3) Dividend Declared $6000
**So how did he get the new amounts for REs?***
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